The tussle between travel agents and air carriers has gained momentum by reaching the doors of regulatory body, directorate general of civil aviation (DGCA) with the outcome expected this week.
?We were evaluating to extend our boycott from Singapore Airlines to the other foreign airlines who had gone for zero commission. However, now we have kept it on hold and are confident that DGCA decision will work for the survival of this industry. The airlines who have gone to zero commission are asked to respond to DGCA with their views on certain queries within 10 days (from May 29) post which the DGCA will take a final decision,? said Rajinder Rai, president Travel Agents Association of India (TAAI).
The travel agents have been demanding to go back to the commission regime, while foreign airlines are maintaining a status quo on ?zero? commission. In December last year, over 2,500 accredited IATA (International Air Transport Association) agents had taken the step to boycott Singapore Airlines tickets and stopped selling the tickets of the carrier. They had expressed to boycott other foreign airlines resorting to zero commission rule. The commission rates have been progressively whittled down by the airlines from 9% to 7% and finally to 5%, before eliminating them altogether.
Agents had also toned down there demand in case of Signapore Airlines from 5% earlier to 3% but had no success following which they had approached Praful Patel, minister of civil aviation and planned to intensify their agitation after the general elections.
An agent who along with members of his fraternity approached the DGCA to sort out the ?zero commission? matter said, ?The DGCA has asked the airlines to respond to our complain.? Previously, agents were given 5% commission calculated on the basic fare of any ticket, but now they contend that travel agents should charge transaction fee from end-consumer.
An official from a private airline says, ?We are doing away with the commission to save on distribution costs?the industry spends close to Rs 200 crore on commissions to travel agents and portals.? He further added that a time when the sector is reeling under financial crunch due to dip in air travel, even a miniscule saving would mean a lot.
On the other side, agents say that The IATA resolution 810 (I) provides for payment of commission at a rate to be fixed by the member (means the airline). It does not say that commission is zero. ?Its correct interpretation should be that a reasonable rate would be fixed by the member,? said an agent.